To effectively manage key responsibilities like regulatory compliance and faster authoring, more organizations are leaning towards Contract Lifecycle Management tools at a centralized level
RALEIGH, N.C., Oct. 12, 2021 /PRNewswire/ -- To improve regulatory compliance and reduce the cycle times involved in authoring, negotiation, and signoff, organizations have expressed a growing interest in adopting a Contract Lifecycle Management (CLM) tool.
An analysis by Beroe suggests that the increased adoption of technology also supplements this trend on the supplier side. Preliminary findings indicate that with the upsurge of Artificial Intelligence (AI) in corporate functions, organizations are preparing to streamline overall contract management by increasing the involvement of technology.
"Fortune 500 companies from various industry segments have traditionally been using Contract Lifecycle Management tools offered by full suite providers. However, to capitalize on robust technological infrastructure and in-depth functionalities, companies are gradually moving towards the best-in-class standalone Contract Lifecycle Management tool providers," says Sujeet Kumar R, Senior Research Analyst at Beroe. "Companies are now looking to overcome the impending post-implementation challenges to leverage the complete power of these tools. Some of these challenges are internal to the company while others are on the supplier side."
The central tenet behind Contract Lifecycle Management is to automate and smoothen the contract lifecycle process. A Centralised Contract Lifecycle Management software provides a repository for all contracts and agreements and stores supplier data and contracts terms in some cases. This often proves to be a holistic, forward-looking solution as the visibility of procurement drastically increases. This can enable companies to execute contracts much faster.
Companies are increasingly competing on global stage. A Centralised Contract Lifecycle Management tool can help focus on their global contracting needs and offers to make it hassle-free. With deepening international competition, each aspect of a contract lifecycle has come under scrutiny, right from creation and negotiation to analysis and renewal.
Contractual activities have become increasingly complex nowadays. There are many parties involved externally and many departments involved internally, which results in ambiguity in the whole process, and it becomes difficult for the stakeholders to hold someone accountable.
An effective Centralised Contract Lifecycle Management tool ensures no opacity in the contract lifecycle by defining ownership and accountability. The governance mechanism put in place by a good Centralised Contract Lifecycle Management tool can facilitate strategic procurement, resulting in cost savings. Internal synergies also can be maximized by effective implementation of a Centralised Contract Lifecycle Management software.
Organizations often need a structured contract management tool when they are scaling up or expanding into newer markets. Redundancies and discrepancies often tend to arise when dealing with different buyers and offices. There can be multiple reasons, but it has been observed that this usually ends up causing disputes between buyers and suppliers. A cloud-based contract management software can provide real-time updates to all accessing stakeholders. The solution can plug the leakages in invoices, ensuring a reduction in disputes between buyers and suppliers. Amidst the increasing legal, external, and market risk, experts suggest that having a Contract Management system in place can improve the overall process efficiency and increase compliance to guidelines.
"In the recent past, companies have emphasized significantly on the procurement of a leading feature-laden, technologically advanced contract management solution. This trend has been prominent across industry segments, especially in highly mature regions like North America and Europe," says Sujeet Kumar R, Senior Research Analyst at Beroe. He said, "Having better Centralised Contract Lifecycle Management tools can improve procurement compliance and create a significant positive business impact in terms of speed of execution, reduction in leakages, and increase in processing volumes."
For more such market insights, procurement intelligence, supplier analysis, price, and cost benchmarking, please log on to Beroe LiVE.Ai: https://www.beroeinc.com/beroe-live-ai/
About Beroe
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions - leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.
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